Young Aussies are Investing!
The ASX recently published its ASX Shareholder Study 2017, in partnership with Deloitte Access Economics.
It’s one of the best investing statistics reports going around, containing loads of insights into investors’ expectations, goals and ideas about the stock market in general.
Around 60% of Australian adults, 11.2 million in total, hold investments inside or outside of superannuation — which is great.
Unfortunately and concerningly, that means 40% of adult Aussies don’t have a single investment. What’s going on there?
A grand total of 31% of total Aussies owns shares. That’s disappointing. 56% hold cash and 37% invest in property.
Encouragingly, 60% of people use some type of professional advice to help make investments.
But with only 31% investing in shares, that means many clients are not doing what their professional says, or ‘professionals’ are not recommending shares.
Diversification is a big issue. 46% of people believe they are well diversified but hold on average 2.7 investments, 40% hold an average of 1.6 investments (!) and 75% of shareowners hold just Australian shares (!!!). What is going on, Australia?!
What is going on, Australia?!
Just 8% of people owned international shares.
But, we’ll take what we can get I suppose since that number was up from only 4% in 2012.
Here’s our explainer video on the topic of Diversification.
Young Aussies Invest More
But perhaps the best thing about this instalment of the ASX Share Ownership Study was the rise in investments by younger people.
Back in 2012, just 10% of 18 to 24-year-olds were investing.
That figure has doubled to 20% in 2017.
I think investing in shares, property or anything from a young age is a great way to develop lifelong financial literacy skills. Even if there are a few rocky patches along the way!
Also back in 2012, just 24% of 25 to 34-year-olds were investing.
Now, 39% of this age group are investing. That’s great.
I guess there is some hope for us after all.